Duff & Phelps will use proceeds from the issue to redeem a portion of its $67 million 15 percent notes due 1995. The company has total debt of $92 million. Most of that was incurred in a 1989 management-led leveraged buyout for roughly $128 million.

The company generated $28 million in cash flow last year.

Freeman, Spogli, an investment firm, owns about two-thirds of Duff & Phelps. Management and employees own the remainder.

The offering is being underwritten by a group co-managed by Merrill Lynch and Prudential Securities. The company will apply to list the common shares on the New York Stock Exchange.